Prior to Recording Purchastransactions, Supplier's Invoicare Checked and Approved in the Accounts

question 27

Multiple Choice

Prior to recording purchastransactions, supplier's invoicare checked and approved in the accounts department. Controls over this function include all of the following except:

• A) marking all supporting documentation as "paid".
• B) approving the supplier's invoice for payment by having an authorized person sign the invoice.
• C) agreeing the details of the supplier's invoice with the related receiving report and purchase order.
• D) determining the mathematical accuracy of the supplier's invoice.

---

Definitions:

Principal/Employer-Agent/Employee Relationship

A legal relationship where an agent is authorized to act on behalf of a principal (employer), creating legal obligations to third parties.

Doctrine

A principle or set of principles laid down by an authority as incontrovertibly true.

Indemnification

A contractual obligation in which one party agrees to compensate another for any harm or loss that has occurred or might occur due to a specified event or action.

Negligent Employee

An employee who fails to exercise the degree of care considered reasonable under the circumstances, resulting in harm or loss.